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Strategic Plan 2013 –2015

Island Coastal EConomIC trust

http://www.islandcoastaltrust.ca


The Island Coastal Economic Trust’s primary objective

is to be a catalyst to build a diverse and sustainable

Island and Coastal Economy

North Island-Coast Development Initiative Trust

Island Coastal Economic Trust

201 A–2435 Mansfield Drive

Courtenay, BC V9N 2M2

Telephone: 250-871-7797 ext. 230

Fax: 250-331-0962





ContEnts

about the Island Coastal Economic trust 1strategic Planning Process 7Environmental scan 9mission, Vision, and Values 13strategic Priorities and actions 2013–2015 16Key Performance targets 25

a p p e n d i x 1

regional Economic update 27



about thE Island Coastal EConomIC trust



1.1 baCKground

The $50 million Island Coastal Economic Trust (ICET) was created by

the Government of BC in 2006 to help diversify the economies of central

and northern Vancouver Island and the Sunshine Coast.

ICET uses its funds to leverage partnerships, investments and opportunities

for Island and Coastal communities, non-profit societies, First Nations,

and other organizations.

ICET also makes strategic investments in targeted sectors to spark new

and sustainable regional economic growth and jobs. These sectors include:

forestry, transportation, tourism, mining, small business, energy,

agriculture and aquaculture, and economic development.

ICET is guided by a 13-person Board and two Regional Advisory Committees

(RACs). Board members are either appointed by the RACs (8 people) or by

the Province (5 people). The RACs are made up of elected local government

officials and MLAs. This exceptional team of local community leaders

collaborates to set regional priorities and build vital multi-regional networks.

The specific region where the Trust may invest is shown on the map

below and can be viewed in detail on the Trust’s web page

at www.islandcoastaltrust.ca

The Trust provides funding and leverages partnerships

to create new and sustainable economic growth and jobs

on the North Island and Sunshine Coast.

aBOUT THe iSLand COaSTaL eCOnOMiC TRUST1 2



1.2 trust arEa

Ucluelet Aquarium Project Homalco Wildlife Tours Project




1

1.3 ICEt grant Programs

ICET’s mission is to strengthen and diversify the economies of central

and northern Vancouver Island and the Sunshine Coast region. Its

core business is to leverage its principle funds to make strategic, non-

repayable contributions to economic development projects within

this region. Guided by its governing legislation, ICET invests its funds

in projects that enhance the region’s competitive position in eight key

sectors:

Forestry Transportation

Tourism Mining

Small Business Economic Development

Agriculture and Aquaculture Energy

1.4 InVEstmEnt aPProaCh

The Board has approved an investment strategy for the $50 million

Regional Fund which is secure, flexible and provides the Trust with the

liquidity it requires to respond to investment opportunities in key sectors

and projects.

Trust funds are invested through the Municipal Finance Authority

pooled funds. Currently ICET funds are distributed between the Money

Market Fund, the Intermediate Fund, and the Bond Fund. The Trust does

not invest in equities, given its short term need for capital. The Board

regularly monitors the performance of its investment funds to ensure

maximum earnings and the preservation of capital, while ensuring

liquidity to respond to project demands.

The total amount of funding disbursed annually will depend on the

project opportunities, the Board’s project investment decisions and the

speed of project implementation and completion.

1.5 trust goVErnanCE

ICET’s governance is defined in its legislation,

the North Island Coast Development Initiative Trust Act.




1

BOaRd Of diReCTORS

ICET is governed by a Board of Directors consisting of 13 directors, 8 of whom

are appointed by two Regional Advisory Committees (RACs), representing the

Central South Island Region and the North–Island Sunshine Coast Region. The

remaining 5 Directors are appointed by BC’s Lieutenant Governor in Council.

The Board occupies a central role in ICET’s governance. It is responsible for

guiding the strategic direction of ICET, providing oversight of management,

and making all final funding decisions. The ICET Board provides direction to

the Chief Executive Officer, who in turn is responsible for the daily operations

of ICET.

The Board includes representatives from diverse areas, including the largest

and smallest communities in the region. This diverse Board, complemented by

the specific expertise of the provincial appointees, brings an exceptional skill

set and wide ranging perspectives to the table at each monthly meeting.

RegiOnaL adviSORy COMMiTTeeS

The ICET Board is advised by two Regional Advisory Committees comprised of

the mayors, chairs or other elected representatives from each regional district

and Members of the Legislative Assembly from the region. Regional Advisory

Committees meet three or four times a year to review all funding applications

to the Trust, and provide advice to the Board on strategic issues. The Chairs

from each of the RACs attend Board meetings as ex officio members.

The Regional Advisory Committees play a key role in ICET’s operations. Their

regional knowledge and ground truth perspective provides the Board with

stronger regional understanding of issues, projects and partnerships. The

RACs also bring the region’s voice to the table in the development of strategy

and policy ensuring that no community is left unheard.

STaff

ICET is managed by a core staff of three, including the Chief Executive Officer,

a Project and Corporate Administrator and an Administrative Coordinator. All

other services are provided by consultants on an as-needed basis to provide

ICET with the high level expertise needed for the diverse nature of its work.




ABOUT THE NORTH ISLAND-COAST DEVELOPMENT INITIATIVE TRUST1

1.6 board of dIrECtors

Mayor Phil Kent, Duncan – Board Chair

Camela Tang – Provincial Appointee – Board Vice-Chair

Mayor Gerry Furney, Port McNeill – Board Treasurer

Mayor Bev Parnham, Port Hardy – Board Secretary

Dallas Smith – Provincial Appointee – Member at Large

Mayor John Henderson, Sechelt

Mayor Rob Hutchins, Ladysmith

Mayor Edward Lewis, Zeballos

Dave Mannix – Provincial Appointee

Arlette Raaen – Provincial Appointee

Mayor John Ruttan, Nanaimo

Joe Stanhope, Chair, Nanaimo Regional District

Kevin Tevington, Provincial Appointee

1.7 rEgIonal adVIsory CommIttEE mEmbErs

niSCRaC MeMBeRS (nORTH iSLand-SUnSHine COaST

RegiOnaL adviSORy COMMiTTee)

Mayor Teunis Westbroek, Qualicum Beach – RAC Chair

Mayor Paul Ives, Comox – RAC Vice-Chair

Mayor Jan Allen, Port Alice

Mayor Craig Anderson, Gold River

Mayor Leslie Baird, Cumberland

Mayor Michael Berry, Alert Bay

Mayor John Douglas, Port Alberni

Gary Feschuk, Chief Councillor,

Sechelt Indian Government District

Mayor Dave Formosa, Powell River

Scott Fraser, MLA, Alberni-Qualicum

Mayor Gerry Furney, Port McNeill

Edwin Grieve, Chair, Comox Valley Regional District

Mayor John Henderson, Sechelt

Al Huddlestan, Chair, Mt.Waddington Regional District

Mayor Bill Irving, Ucluelet

Mayor Walter Jakeway, Campbell River

Mayor Larry Jangula, Courtenay

Mayor Edward Lewis, Zeballos and Chair,

Strathcona Regional District

Mayor John MacDonald, Sayward

Honourable Don McRae, MLA, Comox Valley

Garry Nohr, Chair, Sunshine Coast Regional District

Colin Palmer, Chair, Powell River Regional District

Mayor Bev Parnham, Port Hardy

Mayor Wayne Rowe, Gibsons

Mayor Josie Osborne, Tofino

Mayor Jude Schooner, Tahsis

Nicholas Simons, MLA, Powell River-Sunshine Coast

Cindy Solda, Chair, Alberni-Clayoquot Regional District

Claire Trevena, MLA, North Island

CSiRaC MeMBeRS (CenTRaL SOUTH iSLand

RegiOnaL adviSORy COMMiTTee)

Gerry Giles, Director, Cowichan Valley Regional District –

RAC Chair

Joe Stanhope, Chair, Nanaimo Regional District –

RAC Vice-Chair

Mayor Chris Burger, Parksville

Ron Cantelon, MLA, Parksville-Qualicum

Mayor Jack deJong, Lantzville

Mayor Ross Forrest, Lake Cowichan

George Holme, Director Area “E”,

Regional District of Nanaimo

Mayor Rob Hutchins, Ladysmith and Chair,

Cowichan Valley Regional District

Mayor Phil Kent, Duncan

Leonard Krog, MLA, Nanaimo

Mayor John Lefebure, North Cowichan

Bill Routley, MLA, Cowichan Valley

Doug Routley, MLA, Nanaimo-North Cowichan

Mayor John Ruttan, Nanaimo

1.7 ICEt staff

Line Robert, CEO

Denice Regnier, Project and Corporate Administrator




stratEgIC PlannIng ProCEss



The legislation governing the Trust (Section 14(1)a of the Act) requires

that the directors of the Trust must:

“Each year establish a 3 year strategic plan for the North Island-Coast

Development Initiative Trust including goals for each year of the

strategic plan relating to the fulfillment of the purposes identified

in section 20 in relation to the Regional Account from Section

14(1)a of the Act.”

The first ICET strategic plan was developed as a result of a

comprehensive stakeholder consultation process and round table

discussions held in the winter of 2006 at the Mt. Washington Strategic

Planning Conference. This process led to the establishment of the

current ICET model of funding disbursement and operations and the

first ICET strategic plan, published in 2007.

Since that time, the Board has stayed focused on the original mandate

and direction it was given by its stakeholders. However, the objectives

and strategic priorities and actions are reviewed on an annual basis

during a formal strategic planning process.

On January 18, 2013 the Board of Directors met for a one day planning

session to prepare the 2013-2015 Strategic Plan. The Board reviewed the

results of a Board consultation survey, data on the current economic

environment, existing opportunities and threats, and identified the most

significant issues facing the Trust in the upcoming three years. With this

process the Board validated the long range vision and mission, amended

its strategic objectives and identified the annual priorities and actions

for the 2013-2015 term.

The 2013-2015 Strategic Plan is the seventh edition. To view all Strategic

Plans, visit www.islandcoastaltrust.ca/strategic-plan.

Development of The Trust’s First Strategic Plan

Island Coastal EConomIC trust

STRaTegiC pLanning pROCeSS2 8


http://www.islandcoastaltrust.ca/sites/default/files/ICET_FirstStrategicPlan.pdf

http://www.islandcoastaltrust.ca/strategic-plan


EnVIronmEntal sCan



ICET operates in a strategic environment which is highly influenced

by external forces. These external economic, political and strategic

forces have direct and indirect impacts on ICET operations and

strategic priorities.

EConomIC ContExt

The ICET region continued to face economic challenges in 2012 as the

recovery from the 2008-2009 recession stalled and even regressed in

some areas. There are bright spots and reasons for optimism but the

region is lacking some of the major employment opportunities on the

horizon for other regions of the province, particularly northern BC.

The largest decline in employment is in the construction industry,

followed by tourism related accommodation and food services and

manufacturing. Average employment incomes in the ICET region are

lower than in all other regions of the province. This is the result of

the declining fortunes of key island industries like forestry and the

resulting loss of high income employment in sawmills, pulp and paper

and forestry supply companies and the failure of other high paying

alternatives to emerge.

There are also some positive trends and opportunities. The forest sector

is slowly recovering due to growth in exports to Asia and a greater focus

on specialty products with higher value. Further growth is expected as

the US housing market recovers. Agriculture and related food processing

is also a growth industry due to the rising interest in locally grown food

and the potential for higher value agricultural and seafood processing.

While mining is not as prominent in the ICET region as in other areas

of the province, exploration continues on Northern Vancouver Island

and there are some proposals for mining development which could be

realized in the longer term. Growth in the education sector is a positive

sign and some of the higher value services sectors such as professional,

scientific and technical services should rebound as activity increases in

larger centres and as a result of the attraction of skilled professionals

and businesses due to the quality of life advantages in the region.

The key to reversing the declining income and employment trends in

the coming years will be to continue to encourage growth in high value


enviROnMenTaL SCan3 10


www.islandcoastaltrust.cawww.islandcoastaltrust.ca

industries while also supporting high value economic activity within the

existing dominant sectors in the regional economy.

ImPaCt on ICEt oPEratIons

The global economic challenges have affected all levels of government.

Fiscal tightening is shrinking the available pool of matching

government funding resources for ICET projects. A challenging economic

environment at the community level is also shrinking the available pool

of private sector and community level contributions to projects as well

as tempering the optimism and economic certainty required to move

certain projects forward.

In the past year, ICET disbursed over $7 million dollars to previously

approved projects in varying stages of implementation and completion.

New project approvals for 2012-2013 have been more limited in scope,

with approximately $2 million in new initiatives approved.

The smaller value of new project approvals is a result of declining

matching funding sources and fewer large capital projects. Projects

moving forward are smaller in scope, with the primary matching

funding sources coming from the communities and non-government

sources of funding. Most of these projects are coming from ICET’s

most economically challenged communities who benefit from a more

favorable matching ratio of 1: 1 and 1:2. The result is that the total

amount of funding leveraged into the community is lower than during

the recent federal stimulus funding period, where larger projects from

thriving communities with a 1:3 matching ratio were approved. The

result is that while total leveraging may have decreased, ICET’s role as a

key player and tipping point in projects is increasing. In many projects,

ICET is the only major source of funding outside of applicant and

community resources.

The most significant internal challenge facing ICET in the coming

year remains the uncertainty regarding future funding in a climate of

political and fiscal uncertainty. To date the organization has committed

more than $47 million of its original $50 million endowment.

In 2012-2013, recapitalization of the fund, with a view to becoming a

long term regional economic development resource, was one of ICET’s

OVERVIEW OF ECONOMIC CONDITIONS IN ICET AREA3 enviROnMenTaL SCan3 11


www.islandcoastaltrust.cawww.islandcoastaltrust.ca

key strategic priorities. A significant amount of time and resources

have been invested in obtaining further funding and these activities

will continue into the next fiscal year until either interim or long term

funding is secured.

Regardless of financial uncertainty, the ICET Board is moving forward

with optimism and implementing new programs and tools needed by

the region to respond and adapt to the changing economic climate,

within its ability to do so with remaining funds. In early January 2013

ICET launched a new Economic Development Readiness program to

support community and regional economic development capacity, by

providing funding for strategic economic development planning and

investment readiness initiatives. Early results are very encouraging as

several communities with no economic development functions are now

involved in the development of new local and/or regional economic

development services. More new programs have been planned but

cannot be implemented until additional funding is secured.

OVERVIEW OF ECONOMIC CONDITIONS IN ICET AREA3

Cowichan Estuary Nature Centre ProjectCampbell River Airport Expansion Project

enviROnMenTaL SCan3 12



mIssIon, VIsIon, and ValuEs

Sunshine Coast Trail Project



The Trust is a partner and catalyst

to build a diverse and sustainable

Island and Coastal economy.

The North Island and Sunshine

Coast area is a diversified, globally

competitive regional economy.

Integrity

Transparency

Accountability

Collaboration

Ladysmith Community Marina Visitor Facilities Project Nanaimo Visitors Centre

MiSSiOn

LOng-Range viSiOn

vaLUeS

MiSSiOn, viSiOn, and vaLUeS4 14



LeveRage economic development and diversification investment in the iCeT region

inveST in the development of key economic development infrastructure

iMpROve the environment required for increased investment attraction and job creation

advanCe regional collaboration and planning

MaxiMize the impact of Trust resources through increased efficiency, responsiveness and implementation of best practices

Port Hardy Seine Float and Area Improvement Project Sunshine Coast Trail Project Tin Hat Hut

STRaTegiC OBJeCTiveS

MiSSiOn, viSiOn, and vaLUeS4 15



stratEgIC PrIorItIEs and aCtIons

2013–2015

Port Hardy Seine Float and Area Improvement Project



STRaTegiC pRiORiTieS and aCTiOnS 2013–2015 17

ICET will use its $50 million endowment as a lever to attract

incremental investment from other levels of government,

non-government sources of funding, and community as

well as private sector investment, in individual project

investments as well as larger community and regional

investments.

Strategic priorities 2013-2015

1.1 Seek LOng TeRM fUnding fROM THe gOveRnMenT

Key Actions 2013

A ) Liaise with Province regarding the business case submission

for interim funding

B ) Implement new programs as per available funding

and business case

Actions 2014–2015

A ) Continue to review operations, systems and staffing to adjust

to new funding

B ) Measure success of new initiatives and make necessary

adjustments

C ) Develop and implement new targeted sector programs or

measures as required

D ) Develop long term financing plan for the Trust

1.2 COnTinUe TO MainTain OR exCeed LeveRaging TaRgeTS

Key Actions 2013

A ) Increase the focus on ICET leveraging targets in the guidelines

and project review process

B ) Continue to support applicants with the search

for matching funding

C ) Maintain and improve existing relationships with other

funders to encourage and increase funding in the ICET area

Actions 2014–2015

A ) Continue to maintain or increase leveraging of funding

to the region

B ) Build on existing and new relationships with funders

to increase investment in ICET area


For a detailed summary of strategic

priorities, actions, targets and timelines,

download the 2013–2015 ICET Workplan.

LeveRage EConomIC dEVEloPmEnt and dIVErsIfICatIon InVEstmEnt In thE ICEt rEgIon

1


http://www.islandcoastaltrust.ca/sites/default/files/strategic_plan_2013/ICET-Work-plan-2013-2014-v5.pdf



1.3 inCReaSe THe diveRSiTy Of MaTCHing

fUnding paRTneRS and fUnding SOURCeS

Key Actions 2013

A ) Increase the focus on the diversity of sources of matching

and non-government sources of funding in the application

guideline documents and project approval process

B ) Link applicants with potential sources of

non-government funding

Actions 2014–2015

C ) Continue to build new relationships and partnerships

with non-government and private sector partners

performance measures

• Amount of funding leveraged

• Number of sources and percentage of funding leveraged

• Amount of incremental diversification investment

• Number of projects leading to economic diversification

• Percentage of projects where ICET funding is a tipping point

ICET will support strategic investment in key local and regional

economic development infrastructure, with a strong focus

on incremental economic benefits, economic growth and

diversification, regional cooperation and long term economic

and environmental sustainability through its two grant

programs; the Economic Infrastructure Grant Program and

the Economic Development Readiness Program.


2.1 inCReaSe THe iMpaCT and effiCienCy Of THe eCOnOMiC

deveLOpMenT infRaSTRUCTURe gRanT pROgRaM

Key Actions 2013

A ) Increase and diversify stakeholder awareness and applications

to the program

B ) Increase the diversity of funding applications

STRaTegiC pRiORiTieS and aCTiOnS 2013–2015

inveST In thE dEVEloPmEnt of KEy EConomIC dEVEloPmEnt InfrastruCturE

2




Actions 2014–2015

A ) Monitor the number and diversity of new applicants

and adjust initiatives as required

B ) Monitor the diversity of funding applications

and adjust initiatives as required

2.2 ReSeaRCH and deveLOp neW pROgRaMS and iniTiaTiveS

Key Actions 2013

A ) Conduct research on the economic benefits and best

practices in the energy sector

B ) Review the potential for the development of energy sector

programs or partnerships

Actions 2014–2015

A ) Implement new energy initiatives (if required)

B ) Review the opportunity to develop targeted initiatives

to support small business


• Amount of funding invested in infrastructure

• Number of projects and communities supported

• Number of significant regional infrastructure projects

• Project performance stories

ICET will invest in projects, planning and training to support

the development of attractive, liveable and competitive

investment-ready communities capable of attracting high

value investment and job creation for the region.


3.1 SUppORT eCOnOMiC deveLOpMenT ReadineSS

in COMMUniTieS Of aLL SizeS

Key Actions 2013

A ) Increase stakeholder awareness of the new Economic

Development Readiness program

B ) Provide on-on-one assistance to maximize the impact

of the new program

iMpROve thE EnVIronmEnt rEquIrEd for InCrEasEd InVEstmEnt attraCtIon and job CrEatIon

3




Actions 2014–2015

A ) Continue to increase awareness of the new program

B ) Monitor success of the program and make required

adjustments

C ) Continue to liaise with provincial government and other

levels of government to optimize linkages with provincial

investment attraction tools, courses and other resources

D ) Monitor applicant performance measurement and develop

best practices case studies

E ) If required, develop and implement regional economic

development readiness tools for use by communities

3.2 pROMOTe HigH vaLUe pROJeCTS and inveSTMenT

in THe iCeT RegiOn

Key Actions 2013

A ) Increase the focus on high value investment in the program

guidelines and project review process

B ) Share sectoral and regional statistics with applicants

to support the investment decision process

C ) Share information and best practices related to high value

projects and investment

Actions 2014–2015

A ) Monitor number of new high value investments in region

B ) Develop case studies to share with potential applicants

C ) Continue to share sectoral and regional statistics with applicants


• Number of communities receiving economic readiness support

• Number of economic development readiness projects funded

• Number of new strategic plans developed, new local or

regional ED corporations formed, investments attracted/

attraction websites or documents developed, hosting events

held, regional marketing initiatives planned

• Number of new permanent jobs created by ICET investments

• Number/type of new high value investments attracted

• Value of incremental investments and spin off investments

generated by ICET funded projects

GeoScience BC — Northern Vancouver Island

Exploration Project (W. Jackaman)




• Increase in tourism to region/communities/attractions

attributable to ICET funded projects

• Increase in population, corporate tax base or other

measureable indicators of community growth

ICET will facilitate and provide financial or operational

assistance to support regional collaboration, key networking

or learning events as well as long term regional or sectoral

planning initiatives.


4.1 SUppORT RegiOnaL eCOnOMiC deveLOpMenT pLanning

and LeaRning iniTiaTiveS

Key Actions 2013

A ) Develop a regional visioning and planning process

in collaboration with VIEA and other regional partners

B ) Continue to support regional or sectoral planning, networking

or learning events related to economic development

C ) Continue to provide support for partnership studies related

to regional or sectoral economic development planning

Actions 2014–2015

A ) Develop and present workshops/educational materials

to support the regional visioning and planning process

B ) Develop and present the regional visioning

and planning process

C ) Prepare a regional vision and strategy and report

to stakeholders

4.2 faCiLiTaTe eCOnOMiC deveLOpMenT COLLaBORaTiOn

A ) Continue to organize and support regular in-person meetings

of the Regional Advisory Committees and Board of Directors

B ) Develop new relationships with First Nations communities

and organizations

advanCe rEgIonal CollaboratIon and PlannIng

4




Actions 2014–2015

A ) Continue to use various methods to facilitate regional

economic development collaboration

B ) Research and, if appropriate, develop new initiatives

to maximize First Nations involvement in regional economic

development planning and collaboration

4.3 paRTiCipaTe and pReSenT aT key eCOnOMiC

deveLOpMenT evenTS

A ) Make presentations at key economic development or sectoral

events to promote ICET, its program and best practices

B ) Participate in relevant economic development or sectoral

events, conferences and courses

C ) Provide communities facing economic challenges with

sponsorship funding to attend key regional economic

development events

Actions 2014–2015

A ) Continue to use raise ICET’s profile in the region and province

by targeting specific events for participation

B ) Continue to participate in relevant economic development

events and increase ICET’s leadership role within sector

in the region and province


• Number of regional networking/learning events

funded/supported

• Number of regional plans, initiatives developed

• Number of Regional Advisory Committee meetings

• Number of Board Meetings

• Number of presentations made to stakeholder groups

• Number of new relationships with First Nations communities

• Number of new collaborative initiatives between First

Nations and communities




ICET will ensure that Trust resources are maximized with

frugal administrative practices, continuous improvement

of operations and programs and strong accountability

processes as well as the implementation and sharing of best

practices to promote state-of-the-art administrative and

economic development practices.


5.1 inCReaSe ReCOgniTiOn Of iCeT and iTS pOSiTive TRaCk

ReCORd THROUgH iMpROved COMMUniCaTiOnS

Key Actions 2013

A ) Develop and implement social media

communications strategy

B ) Make key improvements to ICET website

C ) Share project and economic development best practices

Actions 2014–2015

A ) Monitor the success of the new social media strategy

and tools and make adjustments as required

B ) Continue to increase the number and diversity

of followers and users

C ) Increase the interactive component of the strategy

D ) Continue to improve the quality, pertinence and diversity

of information provided

5.2 enSURe MaxiMUM BenefiT Of iCeT ReSOURCeS THROUgH

COnTinUOUS OpeRaTiOnaL iMpROveMenT and effiCienCieS

Key Actions 2013

A ) Improve administrative systems, forms and documents

to simplify process for applicants and increase

administrative efficiency

B ) Continue to develop project case studies to measure

economic impact and benefits of Trust investments

C ) Continue to match or exceed market returns on ICET

investments

Actions 2014–2015

A ) Continue to monitor and document project performance

B ) Continue to match or exceed market returns

on ICET investments

MaxiMize thE ImPaCt of trust rEsourCEs through InCrEasEd EffICIEnCy, aCCountabIlIty and ImPlEmEntatIon of bEst PraCtICEs

5




5.3 iMpLeMenT ManageMenT, gOveRnanCe and eCOnOMiC

deveLOpMenT BeST pRaCTiCeS

Key Actions 2013

A ) Continue to implement management best practices

on an ongoing basis

B ) Continue to implement governance best practices on an ongoing basis

Actions 2014–2015

A ) Continue to research and implement best practices

in management and governance

B ) Continue to develop unique best practices

in regional economic development


• Number and type of new processes, forms and documents

created or implemented

• Improvements in service delivery

• Project and organization evaluations and reviews

• Number and type of analysis and reports produced

• Number and type of stakeholder consultations and communications

• Number of followers on social media

• Rate of return on investments

Bear Cove Recreation Site



KEy PErformanCE targEts



key peRfORManCe TaRgeTS6 26


LeveRage economic development and diversification

investment in the iCeT region

• Leverage investment of more than $3 for every dollar of ICET funding

• Increase funding leverage from non-government sources to at least

25% of total matching funding sources

inveST in the development of key economic

development infrastructure

• Disburse $4 million to approved projects

• Approve $2M in new projects

advanCe regional collaboration and planning• Provide support for at least 3 regional economic development

or sectoral networking, learning or planning events

• Develop new relationships or partnerships with at least three new

non-government funding or sectoral organizations

• Develop new relationships with at least five First Nations communities

or organizations

iMpROve the environment required for increased

investment attraction and job creation

• Provide funding for at least 12 new economic

development readiness initiatives

• Create at least 4.4 permanent jobs per $100,000 in ICET investment

MaxiMize the impact of Trust resources through

increased efficiency, responsiveness and implementation

of best practices

• Implement new social media strategy and tools

• Ensure a market rate of return on Trust investments

key peRfORManCe

TaRgeTS



appendix 1

The ICET region continued to face economic

challenges in 2012 as the recovery from the 2008-

09 recession stalled and even moved backward in

some areas. There are bright spots and reason for

optimism, but the region is lacking some of the major

employment opportunities on the horizon for other

regions of the province, particularly northern BC.

eMpLOyMenT

Employment in the ICET region averaged 183,400 jobs

in 2012, a drop of 1,700 jobs from the previous year and

the lowest regional total since 2005.

Since the start of the last recession in 2008, regional

employment recovered strongly in 2010 but has since

dropped again and is now down 8% over the last four

years. While the ICET region has lost employment

in the last two years, the other major regions of

BC (Southern Interior, Northern BC and the Lower

Mainland/Victoria areas) all saw an employment

increase for the third consecutive year in 2012 and all

regions except the North are now exceeding

pre-recession employment levels (Northern BC is only

1% below its 2008 employment level).

Looking at specific industries, the largest employment

decline in the ICET region from 2008 to 2012 is in

construction, which is down by 9,300 jobs. Tourism-

related accommodation and food services have lost

4,700 jobs and manufacturing is down by 2,500 jobs.

(Note that this data is based on a monthly survey and

averaged over the course of a year so there is a certain

amount of random variation from year to year. The

exact changes are not considered as reliable as the

general trends).

There are some positive trends, however. Education

has added 3,000 jobs and the “resource-based and

utilities” sector, which includes agriculture, forestry,

fishing and mining, has increased by 1,200 jobs. Over a

longer period of time resource-based employment has

declined significantly, but there appears to be a small

positive rebound in the last few years.

160.8 159.4 170.7

178.6 190.9 192.0 198.7 193.9 200.4

185.1 183.4

2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012

ICET Region Employment (thousands)(Source: Statistics Canada Labour Force Survey, annual averages)

3,000

1,200

1,200

600

400

300

200

-200

-1,100

-2,200

-2,200

-2,500

-4,700

-9,300

Education

Resource-based & Utilities

Retail & Wholesale Trade

Business & Other Support Services

Information, Culture & Recreation

Other services

Health Care & Social Assistance

Public Administration

Finance, Insurance, Real Estate & Leasing

Professional, Scientific & Technical Services

Transportation & Warehousing

Manufacturing

Accommodation & Food Services

Construction

Employment Change in ICET Region, 2008-2012(Source: Statistics Canada Labour Force Survey, annual averages)

rEgIonal EConomIC uPdatEPrepared by Jamie Vann Struth, Consulting Economist, VANNSTRUTH Consulting Group



aPPEndIx 1 | economic Update for 2013 Strategic plan 28

Apart from the statistics, there are some reasons for

optimism. The forest sector is slowly recovering due

to growth in exports in Asia and greater focus on

specialty products with higher value. Further growth

is expected as the US housing market continues to

recover and penetration into Asia grows. Agriculture

and related food processing is also a growth industry

due to rising interest in locally-grown food and the

potential for higher-value agricultural and seafood

processing for both local consumption and exporting.

Mining and oil and gas are not nearly as prominent in

the ICET region as other parts of BC but exploration

continues, particularly in northern Vancouver

Island, and there are some proposals for mining

development that could be realized in the longer

term. Growth in the education sector is also a positive

sign and some of the higher-value services sectors

that were growing rapidly earlier in the last decade,

such as professional, scientific and technical services,

should rebound in the larger centres in the region and

as the attraction of skilled professionals for quality of

life reasons continues.

COnSTRUCTiOn aCTiviTy

The value of building permits in the ICET region has

followed the same general pattern as employment,

with a strong post-recession recovery in 2010

followed by further declines the last two years.

The region has followed provincial trends quite

closely in most years, with somewhere between 8%

and 9% of total building permit values every year from

2004 to 2011 (as a reference, the ICET region has 9.5%

of the provincial population). But while the provincial

economy continued moving upward in 2012, the ICET

region saw its share of building permits fall to 6.0%,

its lowest level in more than a decade.

Focusing only on commercial and industrial

construction shows the level of investment in new

employment and income-generating assets. While

these investments have also slowed from their peak

in 2006 and 2007, the fall-off is not as sharp as for

residential construction. The share of provincial

activity did trend down for the 3rd straight year in

2012 as activity increased significantly in both the

Lower Mainland and northern BC.

inCOMeS

Average employment incomes are lower in the ICET

region than any other major region in BC.

This is due primarily to the different mix of industries

in the ICET region that is oriented more toward lower-

paying sectors, including sectors that provide a lot of

part-time and/or seasonal work, such as tourism and

resource industries like fishing.

374

488

650

841

1,043 1,044

885

637

818 758

641

6.6%7.6% 8.2% 8.3% 9.0% 8.3% 8.4% 8.3% 8.4% 8.2%

6.0%

0.0%

5.0%

10.0%

15.0%

20.0%

25.0%

30.0%

2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012-

200

400

600

800

1,000

1,200

Total Building Permit Values in ICET Region ($millions)(Source: BC Stats, based on Statistics Canada data)

ICET Region

ICET Region % of BC Total

66

87 86 94

208

177

152

133 133 119

134

4.9%6.3% 5.5%

4.2%

7.3%6.0% 5.2%

6.7% 6.6%5.1%

4.2%

0.0%

5.0%

10.0%

15.0%

20.0%

25.0%

30.0%

2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012-

50

100

150

200

250

Commercial & Industrial Building Permit Values ($millions)

(Source: BC Stats, based on Statistics Canada data)

ICET Region

ICET Region % of BC Total




Employment incomes have not always been lower in

the ICET region. As recently as 2000, the ICET region

had a higher average income than the Southern

Interior and was only 11% lower than the BC average

compared to 17% lower in 2009. The declining

fortunes of key Island industries like forestry and the

failure of new, high-paying alternatives to emerge has

caused employment incomes to stagnate.

The average real employment income (after removing

inflation) in the ICET region declined by 0.3% per

year from 2000 to 2009. This compares to an annual

increase of 0.5% in BC and larger increases in both the

Southern Interior and Northern BC.

The remedy from an economic development

perspective is to encourage growth in higher-

value industries (e.g., professional services, niche

manufacturing of wood and agri-food products)

while also supporting higher-value economic

activity within existing dominant sectors (e.g.,

tourism).

pOpULaTiOn

Population and employment trends usually

move in the same direction. Growth in employment

opportunities will attract people to move to a region,

but growth in population also creates employment

in sectors like retail, personal services and

public services.

Following this logic the declining employment in

the ICET region might also be reflected in a declining

population. So far this is not quite occurring as

regional population continued to grow to an

estimated 439,000 people in 2012.

However, the rate of population increase is slowing

down, dropping for the 4th straight year in 2012.

The region may be heading toward population

decline if the trend continues.

$38,900

$32,400

$40,700

$34,500

$39,900

British Columbia ICET Region Major Metros Southern Interior Northern BC

Average Employment Income, 2009(Source: Canada Revenue Agency taxfiler data)

0.5%

-0.3%

0.5%

0.6%

0.9%

British Columbia ICET Region Major Metros Southern Interior Northern BC

Annual Change in Average Real Employment Income, 2000-2009

(Source: Canada Revenue Agency taxfiler data)

393.5 396.7 400.3 406.6 413.5 418.9 426.7 431.7 435.6 438.1 439.2

2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012

ICET Region Population Estimates (thousands)(Source: BC Stats)




With a growing and aging population, yet declining

employment, there are more and more people living

in the region who are not working. The number of

people age 15+ in the ICET region who are not in the

labour force increased by 22% from 2008 to 2012 (from

131,000 to nearly 160,000 people), a much greater

increase than in BC overall (10%) or the economically

similar Southern Interior (5%).

Part of the increase is based on the ICET region’s older

age profile and continuing attractiveness to retirees,

but such a dramatic increase in only four years

suggests there are also younger adults who would

like to work but cannot find suitable employment in

the region. Some of them will pursue post-secondary

education as an alternative (which is a common

tactic during economic downturns) but an ongoing

challenge for non-metropolitan regions,

particularly in smaller communities, is having

enough quality employment opportunities to attract

and retain young adults.

0.3%

0.8%0.9%

1.6%1.7%

1.3%

1.8%

1.2%

0.9%

0.6%

0.2%

2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012

Estimated Population Growth in ICET Region(Source: BC Stats)

Ground-breaking for the Cowichan Regional Visitor Centre

B.C. Forest Discovery Centre president Steve Lorimer (left), North Cowichan Mayor Jon Lefebure, Cowichan Bay director Lori Iannidinardo, Duncan Mayor

and ICET Chair Phil Kent, Duncan Cowichan Chamber of Commerce president George Gates, and Cowichan Tribes’ Councillor Lester Joe.


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